S&P 500 Falls 54.79 pts, Breaking 200-Day Moving Average on Tech Selloff

S&P 500 Falls 54.79 pts, Breaking 200-Day Moving Average on Tech Selloff

S&P 500 Falls 54.79 pts, Breaking 200-Day Moving Average on Tech Selloff

$SPY, $DIA, $QQQ, $RUTX, $VXX

A broad sell-off in technology companies drove US stocks sharply lower Monday, as Apple, Amazon, Goldman Sachs and other big names fell.

Banks and consumer-focused companies and media and communications stocks also took heavy losses.

Bond trading was closed for Veterans Day.

Banks and other financial companies also took heavy losses, as expectations are really that the deregulation process that has benefited banks up to this point is going to be slowed down with the Democrats in charge next year.

The US stock market is coming off a 2-week winning streak for the benchmark S&P 500.

Stocks appeared to have regained their footing after a fall in October snapped a 6-month string of gains for the S&P 500. Stocks rallied last week after the US Congressional midterm elections turned out largely as investors expected, with a divided Congress promising legislative gridlock in Washington the next couple of years.

The stock market has typically thrived in periods of divided government, investors continue see uncertainty over the US-China trade dispute and the potential impact of increased oversight of corporate America by Democrats, who take over leadership in the House of Representatives in January.

In addition, some companies have recently reported Q-3 earnings and outlooks that have fueled investors’ worries about the future growth of corporate profits.

While companies got a boost this year from the lower tax rates put in place by President Donald Trump and the GOP last December, several companies have recently warned about the impact of higher costs related to tariffs and rising interest rates.

About 90% of S&P 500 companies have reported Q-3 results so far, with 51% of those posting earnings and revenue that Topped Wall Street’s forecasts, according to S&P Global Market Intelligence.

Several big retailers are due to report results this week, including Walmart, Home Depot, Williams-Sonoma, Nordstrom and J.C. Penney.

Major stock indexes in Europe declined.

Germany’s DAX lost 1.8% and France’s CAC 40 fell 0.9%. Britain’s FTSE 100 shed 0.7 %.

In Asia, markets finished mixed.

Japan’s Nikkei 225 added 0.1%, while Hong Kong’s Hang Seng rose 0.1%. Australia’s S&P-ASX 200 gained 0.3%. The Kospi in SKorea dipped 0.3%.

Monday, the major US stock market indexes finished at: DJIA -602.12 at 25387.18, NAS Comp -206.03 at 7201.07, S&P 500-54.79 at 2726.36

Volume: Trade on the NYSE came in at 856-M/shares exchanges

  • NAS Comp +4.3% YTD
  • DJIA +2.7% YTD
  • S&P 500 +2.0% YTD
  • Russell 2000 -1.1% YTD

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
12 November 2018 QQQ 167.04 Bearish (-0.41) 162.80 169.56
12 November 2018 DIA 254.71 Neutral (-0.09) 253.74 255.84
12 November 2018 SPY 273.3 Bearish (-0.39) 272.17 275.26

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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